Airlines face lingering costs from engine crisis despite improved jet availability

Airlines are successfully returning grounded aircraft to service, but the financial impact of a multi-year engine crisis continues to affect the industry. Air New Zealand Chief Executive Nikhil Ravishankar noted that while aircraft availability has improved, the company may face 12 to 18 months of additional costs related to extra aircraft and engine leases used to maintain schedules during the crisis.

The crisis was driven by durability issues in newer engines and a specific powder-metal problem with Pratt & Whitney engines, which necessitated accelerated inspections. These issues were exacerbated by shortages in labor, parts, and repair capacity. Additionally, delayed deliveries from Boeing and Airbus have forced airlines to keep older jets in service longer, increasing maintenance requirements.

A Reuters analysis of U.S. Transportation Department data indicates that spending on engine labor, repairs, and materials rose approximately 68% between 2019 and 2025 across six large U.S. airline operations, despite flight hours increasing by only about 10%. Recent data also shows a 17% year-over-year increase in these maintenance categories for the first quarter.